Sofi Tanks posts a loss higher than the estimates for the second quarter; Reiterates Outlook – The Madison Leader Gazette – SoFi Technologies (NASDAQ: SOFI) stock fell 14% on Friday after a larger-than-expected loss in the second quarter.

FinTech reiterated its outlook for 2021. For the full year, it projects adjusted net income of $ 980 million and adjusted earnings before interest, taxes, depreciation and amortization of $ 27 million.

The company has already recorded $ 453.25 million in revenue in the first six months of the year.

Its second-quarter adjusted net revenue jumped 74% to $ 237.21 million, as members and products saw strong growth thanks to an expanded range of offerings. Total membership grew 113% year-over-year and total revenue increased 123%.

But the company’s bottom line came in red. The net loss amounted to $ 165.31 million compared to a net profit of $ 7.80 million.

The loss was attributed to adjustments related to its $ 1.2 billion acquisition of cash and shares of the Galileo Financial payment platform in April 2020.

Sofi reassessed its 2020 valuation allowance due to deferred tax liabilities recognized in connection with the acquisition of Galileo. This reduced the valuation allowance by $ 99.8 million. The lack of this tax benefit was one of the main reasons the company recorded losses in the second quarter.

There were also significant non-cash stock-based compensation charges and changes in the fair value of warrants primarily related to the fair market value of SoFi shares.

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